In Part 1 of this series, we explored how to measure purchase intent as a Key Performance Indicator (KPI) for experiential marketing. We introduced the consumer purchase cycle and the challenges in crafting survey questions that effectively measure purchase intent. Next we’ll delve into adjusting purchase intent based on category engagement, and how to use benchmarks to forecast an accurate return-on-investment (ROI).
Estimated reading time: 4 minutes
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Why to Consider Product Category When Measuring Purchase Intent?
Not all purchases are created equal; consumers engage with various categories at different frequencies. In Part 1, for instance, we mentioned the frequency of purchasing orange juice. Comparing this to a boat purchase, it’s clear that the stakes are much lower when considering the orange juice.
Therefore, each product category should be adjusted appropriately to accurately predict actual purchase behaviors using industry-standard forecasting models, such as the AC Nielsen BASES Model, Morwitz et al’s “When Do Purchase Intentions Predict Sales?”, and and other appropriate considerations.
Including this model in your toolset can further enhance your purchase intent measurement strategy and help capture a more accurate picture of campaign effectiveness.
Here are some additional factors to consider when tailoring your purchase intent measurement strategy:
- Category Engagement: Consider how often consumers typically purchase products within a specific category. For frequently purchased items like groceries, a purchase intent timeframe of “next shopping trip” might be appropriate. For less frequent purchases like furniture, a wider timeframe like “next 6 months” might be more suitable.
- Consumer Purchase Cycle: Knowing the consumer’s position in the purchase cycle lets you target them with customized messaging. This can potentially guide them further along the purchase cycle and reduce drop-off rates.
- Decision-Making Complexity: The complexity of the purchase decision-making process can vary significantly between categories. For example, if a brand is promoting a new car at an experiential event, asking about purchase intent within the next month might be unrealistic. Consumers considering a car purchase often go through a longer research and decision-making process.
Using Benchmarks to Forecast ROI
Leveraging industry benchmarks is especially crucial when you’re starting out or your internal data is limited. Benchmarks provide a baseline for comparison and help you interpret your purchase intent data more effectively.
Industry benchmarks provide valuable insights into average purchase intent by category that can deliver the insights needed while waiting for your own, in-house database to populate. This allows you to set realistic goals and expectations based on historical data for similar campaigns within a specific category sooner rather than later.
For example:
- Understanding Category Dynamics: Evaluating historical data from experiential marketing campaigns within your brand category can provide valuable insights. You might find that purchase intent is lacking at retail activations but booming at fairs or festivals. This information can guide you in choosing the most effective venues for your marketing efforts.
- Risk Assessment and Resource Allocation: By comparing your campaign’s purchase intent data against industry benchmarks, you can gain a clearer understanding of the potential return on investment (ROI). This allows for a more data-driven approach, enabling you to prioritize the campaigns with a higher likelihood of success.
- Identifying Best Practices: Benchmarking resources offer powerful insights from successful experiential marketing campaigns. Analyzing these best practices can inform your own campaign strategy and help you develop more effective tactics to drive purchase intent.
Putting it All Together
Tailoring your purchase intent measurement to different categories and leveraging industry benchmarks are both essential for accurately assessing the impact of your experiential marketing efforts.
By considering factors like category engagement, purchase cycle, and decision-making complexity, you gain a deeper understanding of how your campaigns are influencing consumer behavior. Additionally, industry benchmarks offer a wealth of useful insights to direct your experiential marketing campaign decisions and predict a more realistic ROI.
Ready to take your experiential marketing measurement to the next level? PortMA’s Event RecapIQ resource offers a comprehensive toolkit designed to maximize your event ROI.
Event RecapIQ includes industry benchmarks on key event KPIs, including purchase intent, to help you benchmark your results and optimize future campaigns. Explore Event RecapIQ today and unlock the full potential of your experiential marketing efforts!
